Sags and Doug Colkitt break down what actually determines “fairness” in perp exchanges once you separate execution, clearing, and settlement.

Here’s what builders and traders will pull from this conversation:

🔥 Why clearing and execution are treated as completely different systems

🔥 How latency only matters on execution and not settlement

🔥 What actually happens from order signing to matching to settlement

🔥 Why batch auctions run every 40 milliseconds instead of continuous matching

🔥 How oracle pegged orders replace fixed pricing assumptions

🔥 Why market makers get protected with single clearing prices

🔥 How quiet periods reduce toxic flow and stale quote sniping

🔥 Why pro rata replaces time priority inside auctions

🔥 How composability lets external protocols control margin and leverage

🔥 Why execution can move globally while settlement stays anchored

0:00 Intro

2:04 Architecture Overview

6:12 Trade Lifecycle

11:13 Matching Engine & Auctions

16:12 Price Formation & Market Dynamics

18:18 Front-Running Protection

23:52 On-Chain Settlement & Composability

28:03 Future Vision & Scaling

Connect with Doug Colkitt:

https://x.com/0xdoug

Connect with Sags:

https://x.com/RobertSagurton

Trade without Compromise @ Fogo

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